ARCHIVED – T4A Slip – Box 048

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1. Why did the CRA amend the T4A slip?
2. What are the advantages of the new slip?
3. Why has the CRA designated a specific box for the reporting of payments for fees for services on the redesigned T4A slip?
4. When is the T4A slip used?
5. What types of payments need to be reported in the new Box 048 of the T4A slip?
6. Who needs to report payments for fees for services on the T4A slip?
7. How does the new Box 048 affect the taxpayer preparing the T4A slip?
8. What are the responsibilities of an individual or business who receives payments for fees for services?

1. Why did the CRA amend the T4A slip?

The CRA redesigned the T4A slip to simplify reporting requirements, reduce the burden for the filer and increase data quality. The 2010 version of the T4A slip reflects the redesigned look and accommodates the T4A reporting requirements for all tax years. The slip has been converted from the previous set-format design to a generic style similar to the T4 slip, facilitating any future changes.

Similar to the redesign of the other major slips such as the T3, T4, T4E and T5, the Canada Revenue Agency redesigned the T4A slip using the T4 as a template. The T4A slip uses pre-printed boxes with a number, income name and area to report the amount for the most commonly reported amounts. Other less commonly reported amounts are reported using generic boxes known as "Other Information" boxes.

2. What are the advantages of the new slip?

The new T4A slip design simplifies reporting requirements, reduces the burden for the filer and increases data quality. Additionally the design provides the flexibility to meet current and future T4A reporting requirements without making significant changes to the form.

3. Why has the CRA designated a specific box for the reporting of payments for fees for services on the redesigned T4A slip?

Previously, payments for fees for services were reported in Box 28 – Other income, along with many other types of income. This was confusing to some taxpayers. To allow for easier identification of these payments, the redesigned T4A slip includes a separate Box 048 for this purpose. This change does not impose additional reporting requirements.

4. When is the T4A slip used?

A T4A slip is used to report different types of payments made to various recipients when these payments exceed $500 per year, or when income tax has been withheld. The payments to be included on the T4A slip are not limited to payments made to employees. For example, payments such as self-employed commissions, annuities, patronage allocations and payments for fees or other amounts for services have to be reported on T4A slips. For more information see the RC4157, Deducting Income Tax on Pensions and Other Income, and Filing the T4A Slip and Summary guide.

5. What types of payments need to be reported in the new Box 048 of the T4A slip?

To ensure a common understanding of the types of fees for services that have to be included in Box 048, the CRA will undertake consultations with the business community and key stakeholders. In the meantime, all fees for services that were previously reported in Box 28 should continue to be reported on the T4A slip. Until such time as consultations are complete, taxpayers will not be penalized for failing to complete Box 048.

6. Who needs to report payments for fees for services on the T4A slip?

Any person who makes a payment for fees for services should report these amounts on the T4A slip. This requirement primarily affects businesses. It is not intended to include individuals who make payments for personal services such as dental work or hair salon services.

7. How does the new Box 048 affect the taxpayer preparing the T4A slip?

This change to the T4A slip does not impose any additional reporting burden. The reporting of payments for fees for services is a long-standing requirement. Taxpayers who were previously reporting these fees in Box 28 of the former version of the T4A slip, should continue to report these amounts in Box 048.

8. What are the responsibilities of an individual or business who receives payments for fees for services?

An individual or business who receives payments for fees for services must include these amounts in their income when they file their income tax return. Payers of these fees are responsible for providing this information to recipients by completing the T4A slip and providing copies of this slip to both the recipient and the CRA.

Date modified:

2015-07-15